Food is a sensitive issue. Any sign of food shortage would inundate the social media with horror stories of cartels and more. Often the poor B40 are the most impacted.

In some countries, stories of rioting are common. We are fortunate because the government has institutionalised reliable food monitoring mechanisms. But we are not spared from disruptions.

Take eggs for example. The subsidy scheme earlier introduced is now withdrawn as supply stabilises. Notwithstanding such success, the country’s dependence on import remains high.

The value of food imports has been consistently increasing. Malaysia's dependence on imported food raises concerns about food security, and vulnerability to global supply disruptions and price volatility.

The government is actively working to address such challenges through various initiatives. The National Agrofood Policy 2021-2030 (NAP 2.0) aims to develop a sustainable and resilient agri-food sector. The gap between food imports and exports has been increasing, leading to a growing trade deficit in the food sector. Several factors contribute, including population growth, changing dietary habits, and the rise in living standards. The import value of food to Malaysia has reached approximately RM80 billion.

Multi-stakeholder approach

Malaysia requires a multi-stakeholder approach that addresses financial, educational, policy, and infrastructural challenges. We need viable government support and policy frameworks. These would incorporate financial aid, low-interest loans, and equipment subsidies for B40 farmers.

Next allocate underutilised government or idle private land for community farming through leasing schemes. Encourage private sector participation through CSR tax deductions. And simplify permits for urban farming. Cooperative farming is one model which involves establishing B40 farming cooperatives to pool resources and share profits. We can also promote vertical farming, hydroponics, and rooftop gardens in cities. Integrating small farms with tourism can provide additional income.

Training and capacity building is important. Deploy government-NGO partnerships to train B40 farmers in sustainable techniques including organic farming. Must not forget digital literacy. Teach farmers to use apps for weather forecasts, market prices, and e-commerce. Create mentorship programmes pairing smallholders with successful agropreneurs.

Market access and value chain integration are critical. Connect farmers to supermarkets, restaurants, and farmers' markets. Develop apps for B40 farmers to sell produce directly. Enable farmers to add value, example turning surplus into jams, dried goods etc.

Sustainable practices

Farmers must embrace sustainable and climate-resilient practices. Promote crop diversification and soil health. Use solar-powered irrigation. And practise rainwater harvesting and drip irrigation to reduce costs.

Companies like FELDA, SD Guthrie and Nestlé can fund community farms. There should be research partnerships with universities for high-yield, low-cost farming solutions. Banks like AgroBank can offer tailored loans.

A policy on social protection and safety nets is needed. Create crop insurance schemes.

Link community farms to school feeding programme initiatives. Effective monitoring and impact assessment are crucial. Use IoT and blockchain for transparent supply chains.

Establish feedback loops through regular community consultations to refine programmes. Through such measures, Malaysia can empower its B40 group through community farming, reducing poverty, enhancing food security, and promoting green growth.

Challenges

There are challenges. Many cooperatives suffer from poor leadership and weak management skills. Decision-making is often centralised, with limited participation from members.

Cases of political interference have eroded trust. Many join only to access government grants or subsidies. Co-ops mostly focus on primary production rather than venturing into value-added processing and branding. This limits their competitiveness and bargaining power.

Limited working capital and lack of diversified income streams are of concern. There is heavy dependence on government support. Many co-ops have not adapted to modern agribusiness practices, technology adoption, or digital marketing. They remain traditional in their operations and business structures. Agricultural co-ops in Malaysia tend to operate in silos rather than strategic alliances. This limits economies of scale, market negotiation power, and knowledge-sharing opportunities.

We need to strengthen governance and leadership. Financial management for cooperative leaders is critical. So are participatory decision-making and accountability.

Educate members on the long-term benefits of the cooperative model. Foster a culture of democratic participation and profit-sharing based on contributions, not just subsidies.

Support co-ops to venture into downstream activities, food processing, eco-packaging, branding, and digital marketplaces. Explore agritourism, eco-farming experiences, and specialty product branding. Collaborate with private agribusinesses, universities, NGOs, and digital platforms.

Encourage co-ops to form federations by commodity type or region. This allows bulk procurement of inputs, collective marketing, and lobbying strength.

Adopt digital tools for farm management, cooperative accounting, online marketing, and e-payment systems.

Social media

Use social media to market directly to consumers. Incentivise entrepreneurial initiatives within cooperatives. Provide seed funding schemes tied to performance milestones.

To thrive, Malaysia’s agricultural cooperatives need to evolve from subsidy-driven collectives to entrepreneurial, value-adding, digitally connected, and member-driven enterprises.

-- BERNAMA

Prof Dato Dr Ahmad Ibrahim (ahmadibrahim@ucsiuniversity.edu.my) is affiliated with the Tan Sri Omar Centre for STI Policy Studies at UCSI University and is an Adjunct Professor at the Ungku Aziz Centre for Development Studies, Universiti Malaya.